How to Encourage Your Kids to Save Money

As parents, we want what’s best for our children. That’s why it’s never too early to encourage them to save. It doesn’t matter how little or how much they save. What matters is that they get started right away.

Having our children understand the value of money and the importance of saving is probably one of the most important life lessons we can teach them. While the concept of saving may be simple enough, it’s ironic how, even as adults, we find it hard to do, sometimes.

If you get your children to start early in the money-saving game, they’ll grow up to be financially smart adults. They won’t have a very difficult time purchasing big-ticket items, like their own house or even when they start applying for car loans in Perth because they’re all grown up and need to have their own set of wheels.

Those are just some compelling reasons your children should start developing wise spending and saving habits as soon as possible. The sooner they get started, the better off they will be.

To help make this bright future for your children possible, here are several ways you can encourage your kids to save and have some fun in the process.

Teach them the importance of saving.

If you ask your kids to do something, it will be easier for them to follow you when they understand why they need to do it in the first place. When they need something, you can buy it for them. That may be your children’s thinking. However, if you teach them to set goals, like a new toy they want to buy, it will be easier for you to persuade them.

Give them a clear glass jar.

While there’s nothing wrong with just opting for the classic piggy bank, sometimes, children require a more visual approach. It’s easier to encourage them to save when they see their savings grow.

That’s why using a piggy bank can’t quite cut it, sometimes. So, no matter how much amount they put in their jar, seeing their savings grow becomes a lot more tangible over time.

Help them open a savings account.

Once your child has been in the habit of saving for several months, it’s a good idea to take them to the bank. Open an account for them and take this opportunity to explain to them the concept of interest, and the benefits of letting their money grow over time when left untouched. There are even some banks that offer a savings club for children.

Explain to them where the money goes.

No matter how young your children are, they can grasp the idea of living expenses. Explain to them you need to set aside money for essential expenses like food, shelter, clothing, among others. Kids are smart, and you might even be surprised at how quick they can pick up on things.

Set a good example.

Speaking of picking up on things, children are quite impressionable. So, always be mindful. Remember that your kids are always looking at you and your spending habits. Children will often imitate what they see from adults, so be a good example. If you want to them to save, then you should also practice what you preach.

Teach them how to budget.

This is a useful skill that your children will benefit from well into their adulthood. Give them some pocket money and teach them how to allocate some of it for various things, like food, clothes, and savings. Also, allow them to splurge on something like a toy, every now and then.

While there’s a chance they might regret blowing a huge chunk of their budget on an item, but that’s fine. This is where your good parenting skills will come into play. You can encourage them to save again once they’ve learned a valuable lesson, like buying something out of impulse.

Developing good spending and saving habits is crucial for everyone. We hope these tips will help motivate your children to build solid financial skills as they grow into adults. If you have kids and are currently teaching them how to save, we’d love to know how you’re going. Please share some of your own tips by leaving us a comment.